When former prime minister Scott Morrison outlined his vision for an ambitious banking policy in 2018,he declared it would be a “revolution” for Australian customers.
The National Australia Bank has inked a deal with fintech lender Plenti to provide loans for electric vehicle and other cars,and could acquire 15 per cent of its shares.
Fintechs say the take-up of a data regime called open banking has been underwhelming. But they maintain it can shake up the industry,eventually.
No longer is the system based around banks;rather,it is increasingly centred around markets.
Financial management apps look set to expand into insurance and superannuation,as the consumer data right moves into new territory.
One of the most difficult challenges facing regulators around the world is how to deal with the explosive growth and increasing power of the big tech companies. China has just shown how it will deal with them.
You could eventually save thousands of dollars each year on bank products,energy,telcos and insurance at the simple click of a button.
New regime will make it easier to find better deals on mortgages,personal loans,credit cards and savings account interest rates.
Commonwealth Bank has warned that customers who hand over their banking password to other businesses such as fintechs face a greater risk of falling victim to scams or fraud.
Home lending startups say they will need to use traditional methods of collecting customer data,including'screen scraping',during the transition to open banking.
Fintechs are ready to pounce on the big four's customers as a new regime spurs more competition and potential profit headaches for the majors.